By: Sibley S.B. No. 928
A BILL TO BE ENTITLED
AN ACT
1-1 relating to unclaimed property and presumption of abandonment.
1-2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-3 SECTION 1. Section 72.101, Property Code, is amended to read
1-4 as follows:
1-5 (a) Except as provided by this section and Section 72.102,
1-6 personal property is presumed abandoned if, for longer than three
1-7 years:
1-8 (1) the existence and location of the owner of the
1-9 property is unknown to the holder of the property; and
1-10 (2) according to the knowledge and records of the
1-11 holder of the property, a claim to the property has not been
1-12 asserted or an act of ownership of the property has not been
1-13 exercised.
1-14 (b) The three year period leading to a presumption of
1-15 abandonment of stock or another intangible ownership interest in a
1-16 business association, the existence of which is evidenced by
1-17 records available to the association, commences on the first date
1-18 that either a sum payable as a result of the ownership interest is
1-19 unclaimed by the owner, or a communication to the owner is returned
1-20 undelivered by the United States Postal Service.
1-21 (1) The running of the three-year period of
1-22 abandonment ceases immediately upon the exercise of an act of
1-23 ownership by the owner regarding the ownership interest or sum
2-1 payable or a communication with the association as evidenced by a
2-2 memorandum or other record on file with the association or its
2-3 agents.
2-4 (2) At the time an ownership interest is presumed
2-5 abandoned under this section, any sum then held for or owing to the
2-6 owner as a result of the interest, and not previously presumed
2-7 abandoned, is presumed abandoned.
2-8 (3) Any stock or other intangible ownership interest
2-9 enrolled in a plan that provides for the automatic reinvestment of
2-10 dividends, distributions or other sums payable as a result of the
2-11 ownership interest is subject to the presumption of abandonment as
2-12 provided by this section.
2-13 <(b) Except as provided by Subsections (d), (e), and (g),
2-14 stock or another intangible ownership interest in a business
2-15 association, the existence of which is evidenced by records
2-16 available to the association, is presumed abandoned if:>
2-17 <(1) a dividend, distribution, or other sum payable as
2-18 a result of the interest has remained unclaimed by the owner for
2-19 three years and the owner within three years has not:>
2-20 <(A) communicated in writing with the association
2-21 regarding the interest or a dividend, distribution, or other sum
2-22 payable as a result of the interest; or>
2-23 <(B) otherwise communicated with the association
2-24 regarding the interest or a dividend, distribution, or other sum
2-25 payable as a result of the interest, as evidenced by a memorandum
3-1 or other record on file with the association prepared by the
3-2 association or its agents; and>
3-3 <(2) the business association does not know the
3-4 location of the owner at the end of the three-year period.>
3-5 <(c) The period leading to a presumption of abandonment under
3-6 Subsection (b) commences on the date that a communication from the
3-7 association to the owner is returned undelivered by the United
3-8 States Postal Service.>
3-9 <(d) At the expiration of a three-year period following the
3-10 failure of the owner to claim a dividend, distribution, or other
3-11 sum payable to the owner as a result of the interest, the interest
3-12 is not presumed abandoned unless there have been at least three
3-13 dividends, distributions, or other sums paid during the period,
3-14 none of which has been claimed by the owner. If three dividends,
3-15 distributions, or other sums are paid during the three-year period,
3-16 the period leading to a presumption of abandonment commences on the
3-17 date that payment of the first unclaimed dividend, distribution, or
3-18 other sum became due and payable. If three dividends,
3-19 distributions, or other sums are not paid during the presumptive
3-20 period, the period continues to run until there have been three
3-21 dividends, distributions, or other sums that have not been claimed
3-22 by the owner.>
3-23 <(e) The running of the three-year period of abandonment
3-24 ceases immediately upon the occurrence of a communication referred
3-25 to in Subsection (b). If any future dividend, distribution, or
4-1 other sum payable to the owner as a result of the interest is
4-2 subsequently not claimed by the owner, a new period of abandonment
4-3 commences and relates back to the time that dividend, distribution,
4-4 or other sum became due and payable.>
4-5 <(f) At the time an interest is presumed abandoned under this
4-6 section, any dividend, distribution, or other sum then held for or
4-7 owing to the owner as a result of the interest, and not previously
4-8 presumed abandoned, is presumed abandoned.>
4-9 <(g) Any stock or other intangible ownership interest
4-10 enrolled in a plan that provides for the automatic reinvestment of
4-11 dividends, distributions, or other sums payable as a result of the
4-12 interest is subject to the presumption of abandonment as provided
4-13 by Subsection (a).>
4-14 SECTION 2. Section 73.003, Property Code, is amended to read
4-15 as follows:
4-16 (b) An account is inactive if for more than one year there
4-17 has not been a debit or credit to the account because of an act by
4-18 the depositor or an agent of the depositor, other than the
4-19 depository; and the depositor has not communicated with the
4-20 depository. A safe deposit box is inactive if the rental on the
4-21 box is delinquent for more than one year.
4-22 (d) For purposes of presumption of abandonment under Section
4-23 73.101, the 5-year period of inactivity for accounts begins on the
4-24 date of the last transaction or correspondence by the depositor.
4-25 The 5-year period of inactivity of safe deposit boxes begins on the
5-1 date the rental was due but not paid.
5-2 SECTION 3. Section 74.401(a), Property Code, is amended to
5-3 read as follows:
5-4 (a) Except as provided by Subsection (c), the State
5-5 Treasurer shall sell at public sale all personal property, other
5-6 than money and marketable securities, delivered to the State
5-7 Treasurer in accordance with Section 74.301. The State Treasurer
5-8 shall conduct the sale in the city in this state that the State
5-9 Treasurer determines affords the most favorable market for the
5-10 particular property.
5-11 SECTION 4. Section 74.402, Property Code, is amended to read
5-12 as follows:
5-13 Before the 21st day preceding the day on which a public
5-14 sale<, public or private,> is held under Section 74.401, the State
5-15 Treasurer shall publish notice of the sale in a newspaper of
5-16 general circulation in the county where the sale is to be held.
5-17 SECTION 5. Section 74.503, Property Code, is amended to read
5-18 as follows:
5-19 The State Treasurer <and the attorney general or their
5-20 authorized agents jointly> shall consider the validity of each
5-21 claim filed under this subchapter.
5-22 SECTION 6. Section 74.504, Property Code, is amended to read
5-23 as follows:
5-24 (a) The State Treasurer <and the attorney general> may hold
5-25 a hearing and receive evidence concerning a claim filed under this
6-1 subchapter.
6-2 (b) If the State Treasurer <and the attorney general>
6-3 considers that a hearing is necessary to determine the validity of
6-4 a claim, <both> the State Treasurer <and the attorney general>
6-5 shall sign the statement of the findings and the decision on the
6-6 claim. The statement shall report the substance of the evidence
6-7 heard and the reasons for the decision. The statement is a public
6-8 record.
6-9 (c) If the State Treasurer <and the attorney general>
6-10 determines that a claim is valid, the State Treasurer <they> shall
6-11 approve and sign the claim.
6-12 SECTION 7. Section 74.507, Property Code, is amended to read
6-13 as follows:
6-14 A person who informs a potential claimant that the claimant
6-15 may be entitled to claim property that is reportable to the State
6-16 Treasurer under this chapter, that has been reported to the State
6-17 Treasurer, or that is in the possession of the State Treasurer, <or
6-18 a person who files a claim under this subchapter for such property
6-19 on behalf of a claimant,> may not contract for or receive from the
6-20 claimant for services an amount that exceeds 10 percent of the
6-21 value of the property recovered. If the property involved is
6-22 mineral proceeds, the amount for services may not include a portion
6-23 of the underlying minerals or any production payment, overriding
6-24 royalty, or similar payment.
6-25 SECTION 8. Section 74.602(d), Property Code, is repealed.
7-1 <(d) On the effective date of this Act, the state treasurer
7-2 shall transfer $1.5 million from the unclaimed money fund to the
7-3 state ethics fund.>
7-4 SECTION 9. Section 74.702(b), Property Code, is amended to
7-5 read as follows:
7-6 (b) The State Treasurer, the attorney general, or an agent
7-7 of either may not make public any information obtained by an
7-8 examination made under this section and may not disclose that
7-9 information except in the course of a judicial proceeding,
7-10 authorized by this chapter, in which the state is a party; or
7-11 pursuant to an agreement with another state allowing joint audits
7-12 or the exchange of information subject to this Section.
7-13 SECTION 10. The importance of this legislation and the
7-14 crowded condition of the calendars in both houses create an
7-15 emergency and an imperative public necessity that the
7-16 constitutional rule requiring bills to be read on three several
7-17 days in each house be suspended, and this rule is hereby suspended.